LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Lake Shore Cash Mar 31/11 is $88 mil.

[Goldblack]

    Just to clarify re posting of Denton7 .. he says CIBC report infers "Resource rich and Cash poor management

  policy"  . If you refer to my post of June 6th the CIBC quote I used was Lsg is becoming resource rich and

  Processing facility Poor.. In fact the company had $88 mil of cash on hand at March 31/11. and as per the

  CIBC report of June 5th the cash position was listed as $ 97 mil .

    Also during the first quarter LSG put in place a credit loan facility of $ 50 mil, which has not been drawn on.


     Therefore LSG has Cash and available lines of credit available of $138 mil.

    During the first quarter LSG funds activity was as follows:


                 Funds provided by operating activities                                      14.1 mil  

                Capital used in Mine Investing Activities                                    (22.2) mil

                 Funds Provided by Financing Activities                                       4.0    mil
                                                                                                                            ---------------
                 Funds used in Q1 Activities                                                           (4.1) mil
                                                                                                                             --------------

   On a go forward basis the company's annual production is 125,000 ounces annually

   and with gold prices at 1,525 an ounce and projected operating costs of 575 an ounce , this will

  provide the company with annual gross margin of 118.75 mil(125,000 oz  times 950 net). 

  This should provide the company with enough funds going forward to cover operating expenses

   and exploration and development expenses for 2011.

      I hope this clarifies the companies cash position of 88 mil on hand.

    GLTA